Drilling down into specific forecasts, BofA-ML expects ICICI Bank, HCL Tech, Apollo Tyres and Jaiprakash Hydro Power to perform well and Reliance Industries, IDEA and Larsen & Toubro to disappoint.

Other analysts also expect weak earnings in the March quarter to persist due to high inflation and slowing economic growth.

According to a report by brokerage Angel Broking, earnings growth for the 30-blue-chip companies is expected at 9.4 per cent during the June quarter. However, the brokerage had projected 10.9 per cent year-on-year (y-o-y) earning growth of Sensex companies (excluding SBI and oil and gas companies) during the fourth quarter.

"Normalised earnings growth for the Sensex is expected at 9.4 per cent and that for our coverage companies is expected at 10.7 per cent (this is excluding the oil and gas sector, SBI and Tata Motors to eliminate distortions)," the report said.

Another brokerage Edelweiss expects IT, pharma, auto and utilities to post 'healthy' top line growth but said growth in metals, construction and real estate firms could be "relatively lower".

During the quarter, rupee has depreciated by 8 per cent against the US dollar, which would aid earnings growth of IT companies.

Emkay Global Financial Services said, profit after tax (PAT)of mid cap and small cap companies are expected to contract by 5.5 per cent and 4.8 per cent, respectively.

However, sales for mid cap and small cap firms is projected to grow at 20.2 per cent and 15.5 per cent, respectively, during the current quarter.